The U.S. Court of Appeals for the Sixth Circuit has affirmed summary judgments in favor of our clients Smiths Medical ASD and Medex Cardio-Pulmonary, Inc. in a case argued by Drinker Biddle Partner Ted Becker.
The case involves a contract dispute between a two medical device manufacturers: Medex Cardio-Pulmonary, Inc. (“Medex CP”) and Inhalation Plastics, Inc. (“IPI”).
Medex CP acquired and leased assets of IPI under agreements that provided for IPI to receive a stream of payments based on the sale of its products. The agreements contained anti-assignment provisions. The parent company of Smiths Medical ASD later merged with the parent company of Medex CP. IPI claimed that Medex CP impermissibly assigned IPI’s assets to Smiths Medical ASD. Our clients Medex CP and Smiths Medical ASD countered that there was no assignment – rather, there was a merger - which by law does not effect an assignment.
The U.S. District Court for the Southern District of Ohio agreed and entered summary judgment in favor of our clients. IPI also sought between $7 to $10 million dollars from our clients for breach of an alleged oral agreement to settle the dispute before the lawsuit was filed. The U.S. District Court granted summary judgment in favor of our clients, finding that there was no enforceable oral contract.